Jane cashed the checks separately and structured the transactions in an attempt to evade the CTR reporting requirement. Jane cashes a $9,000 personal check at a financial institution on a Monday, then cashes another $9,000 personal check at the financial institution the following day. Jane needs $18,000 in cash to pay for supplies for her woodcarving business.John instead deposits $7,500 in cash in the morning with one financial institution employee and comes back to the financial institution later in the day to another employee to deposit the remaining $7,500, hoping to evade the CTR reporting requirement. John knows that if he deposits $15,000 in cash, his financial institution will be required to file a CTR. John has $15,000 in cash he obtained from selling his truck.If structuring involves more than $100,000 in a twelve month period or is performed while violating another law of the United States, the penalty is doubled. Structuring transactions to prevent a CTR from being reported can result in imprisonment for not more than five years and/or a fine of up to $250,000. This is called “structuring.” Federal law makes it a crime to break up transactions into smaller amounts for the purpose of evading the CTR reporting requirement and this may lead to a required disclosure from the financial institution to the government. Can I break up my currency transactions into multiple, smaller amounts to avoid being reported to the government? The financial institution collects this information in a manner consistent with a customer’s right to financial privacy. There is no general prohibition against handling large amounts of currency and the filing of a CTR is required regardless of the reasons for the currency transaction. This requirement applies whether the individual conducting the transaction has an account relationship with the institution or not.
CURRENCY TRANSACTION REPORT SOCIAL SECURITY LICENSE
To comply with this law, financial institutions must obtain personal identification information about the individual conducting the transaction such as a Social Security number as well as a driver’s license or other government issued document. The federal law requiring these reports was passed to safeguard the financial industry from threats posed by money laundering and other financial crime. These transactions are reported on Currency Transaction Reports (CTRs). Why is my financial institution asking me for identification and personal information?įederal law requires financial institutions to report currency (cash or coin) transactions over $10,000 conducted by, or on behalf of, one person, as well as multiple currency transactions that aggregate to be over $10,000 in a single day.
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